Saudi Arabia Seeks to Open New Markets to Confront Global Supply Chain Crisis

Saudi Arabia is seeking to diversify the resources of significant commodities to avoid the risks of the global supply chains crisis. (Asharq Al-Awsat)
Saudi Arabia is seeking to diversify the resources of significant commodities to avoid the risks of the global supply chains crisis. (Asharq Al-Awsat)
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Saudi Arabia Seeks to Open New Markets to Confront Global Supply Chain Crisis

Saudi Arabia is seeking to diversify the resources of significant commodities to avoid the risks of the global supply chains crisis. (Asharq Al-Awsat)
Saudi Arabia is seeking to diversify the resources of significant commodities to avoid the risks of the global supply chains crisis. (Asharq Al-Awsat)

The Council of Saudi Chambers (CSC) is seeking to open new markets to achieve food security for essential commodities amid the global supply chain crisis.

The food supply chain crisis led to an increase in the prices of many food commodities and raw materials, and its impact included the oil markets and logistics services.

A recent study prepared by the Assistant General Secretariat for Economic Affairs of the Council revealed the repercussions of the crisis on the local and global economy, indicating that the Kingdom is a pivotal country with an effective influence on the stability of global economic markets.

The study said the global crisis affected many food, energy, and industrial chains, stressing the need for efforts to achieve food security for basic and other commodities.

It has supported and enabled importers and producers in the private sector to maintain price levels of a strategic stock of commodities with high food risks and other items necessary for achieving food security and comprehensive development in the Kingdom.

The study stated that the Council worked through the private sector to open new markets to import alternative goods in the short- and medium-term and maintain price levels at the purchasing power of citizens for most food and other products.

The Council identified the challenges and risks arising from the crisis in the local market and discussed it with the concerned authorities and business owners.

The CSC prepared several supportive initiatives to avoid the food supply chain crisis.

The Council studied various aspects of the crisis to determine possible advantages of the global situation in attracting international companies to the local Saudi market in partnership with Saudi investors.

Under its plan to serve the private sector and the national economy to avoid the crisis of food supply chains and other commodities, the Council took several essential steps to achieve the national economy's general interest.

It formed specialized teams for essential food commodities to speed up taking urgent decisions and join the crisis management committee of the Saudi Grains Organization (SAGO).

The challenges of food supply chains and other commodities include the high costs of raw materials and shipping, the lack of shipping companies working in the maritime field with the Kingdom, the delay of shipments to the local market due to global restrictions and high port, and customs fees.

The Council stressed that the government agencies are exerting efforts to identify the risks and challenges of the crisis and work to resolve the issues facing the private sector.

It also devised support programs for the public sector and established a direct line of communication with the concerned authorities to support the industry in providing food commodities.



Washington Urges Israel to Extend Cooperation with Palestinian Banks

A West Bank Jewish settlement is seen in the background, while a protestor waves a Palestinian flag during a protest against Israel's separation barrier in the West Bank village of Bilin in 2012. (AP)
A West Bank Jewish settlement is seen in the background, while a protestor waves a Palestinian flag during a protest against Israel's separation barrier in the West Bank village of Bilin in 2012. (AP)
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Washington Urges Israel to Extend Cooperation with Palestinian Banks

A West Bank Jewish settlement is seen in the background, while a protestor waves a Palestinian flag during a protest against Israel's separation barrier in the West Bank village of Bilin in 2012. (AP)
A West Bank Jewish settlement is seen in the background, while a protestor waves a Palestinian flag during a protest against Israel's separation barrier in the West Bank village of Bilin in 2012. (AP)

The United States on Thursday called on Israel to extend its cooperation with Palestinian banks for another year, to avoid blocking vital transactions in the occupied West Bank.

"I am glad that Israel has allowed its banks to continue cooperating with Palestinian banks, but I remain convinced that a one-year extension of the waiver to facilitate this cooperation is needed," US Treasury Secretary Janet Yellen said Thursday, on the sidelines of a meeting of G20 finance ministers in Rio de Janeiro.

In May, Israeli Finance Minister Bezalel Smotrich threatened to cut off a vital banking channel between Israel and the West Bank in response to three European countries recognizing the State of Palestine.

On June 30, however, Smotrich extended a waiver that allows cooperation between Israel's banking system and Palestinian banks in the occupied West Bank for four months, according to Israeli media, according to AFP.

The Times of Israel newspaper reported that the decision on the waiver was made at a cabinet meeting in a "move that saw Israel legalize several West Bank settlement outposts."

The waiver was due to expire at the end of June, and the extension permitted Israeli banks to process payments for salaries and services to the Palestinian Authority in shekels, averting a blow to a Palestinian economy already devastated by the war in Gaza.

The Israeli threat raised serious concerns in the United States, which said at the time it feared "a humanitarian crisis" if banking ties were cut.

According to Washington, these banking channels are key to nearly $8 billion of imports from Israel to the West Bank, including electricity, water, fuel and food.